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Thirty-five Percent Liquidated Damages Enforced Liquidated Damages; Termination

Saturday, July 03, 2004 01:34 pm

Thirty-five Percent Liquidated Damages Enforced Liquidated Damages; Termination

A District of Columbia court has enforced a liquidated damages clause allowing a contractor 35 percent of the contract price for the owner's cancellation of the contract.

Patrick Vailes awarded a contract to S. Brooke Purll, Inc. for renovation of a house for the fixed price of $103,148. The contract contained the following provision: "The [owner] further agrees that if he shall cancel this Contract for any reason whatsoever then he shall pay to the contractor as fixed and liquidated damages, without proof of loss, the sum of money equal to thirty-five percent (35%) of the full contract price hereinabove stated."


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